Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelertoing Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Natural Gas Prices are Going Higher (So are these “Super Shift” Investor Opportunities)

Commodities / Natural Gas Nov 05, 2014 - 11:18 AM GMT

By: Money_Morning


Dr. Kent Moors writes: While everybody is focused on oil, natural gas prices are moving in a very different direction.


As of this afternoon, natural gas prices at Henry Hub stood at $4.15 per 1,000 cubic feet (or million BTUs). Since last Thursday, the price of natural gas has jumped by 13.7%.

Located in Erath, Louisiana, Henry Hub serves as the official delivery location for futures contracts on the NYMEX. It serves the same function that Cushing, OK does for crude.

The week-long spike in price shows that natural gas doesn’t necessarily move in tandem with oil.

And that is providing us with some real nice short-term opportunities…

These Four “Super Shifts” Mean Higher Natural Gas Prices

Now keep in mind that crude oil prices will be recovering. Despite what the “sky is falling” pundits are telling you, the long term direction for crude is up.

As for natural gas, the market is now cycling into a seasonal demand pattern that will send prices higher, assuming the winter is about the same as last year. Unusually early storms have already hit New England, boding well for those who suggest there is another cold winter on the way.

The important point to remember is this: The current increase in natural gas prices may be winter related, but there are four other “super shifts” taking place that will buttress higher prices as we move into 2015. They include the use of natural gas in electricity generation; the petrochemical industry; liquefied natural gas (LNG) exports; and a new generation of fuel cell and battery applications.

Of course, the transition from coal to natural gas has been going on for some time now. And while there is a balance forming in several specific regions in the country where coal (even lower grade coal) has reached usage equilibrium with gas, the larger move to gas continues to gain momentum.

In fact, co-fueled generating plants used to refer to power stations that produced electricity from coal or gas. But for several sections of the country, that designation now means either gas or renewables like solar, wind, biomass, and even geothermal out west.

We are now on track to exceed the predications I made several years ago. By 2020, at least one-third of the U.S. generating capacity derived from coal will have been retired since 2012. The vast majority of that will be switching over to natural gas.

I initially estimated that each 10 Gigawatts (GW) of generating capacity would require an additional 1 billion cubic feet of gas per day. That now stands at an additional 1.2 billion cubic feet of gas per day, with at least 30 GW moving over to gas.

To put this in perspective, this transition alone – ignoring any of the impact on coal from the intensifying Environmental Protection Agency standard increases – will eliminate almost twice the current natural gas storage surplus nationwide.

We are also seeing a much bigger transition from oil to natural gas in the production of petrochemicals. This has resulted in an energetic competition among several regions for the building of several multi-billion dollar cracker facilities.

These crackers would serve as the sourcing for all manner of petrochemicals from plastics to advanced fuels produced from gas. Currently, there are seven serious proposals on the boards to probably build three initial plants nationwide.

Then there’s the LNG trade, with exports from the U.S. scheduled to be phased in about this time next year. I have talked about the LNG revolution on several occasions here in OEI. The only additional point I want to make this time around is to remind you that American exports should account for between 6 to 8% of a rapidly expanding global LNG market by 2020. That’s starting from where we are today, which is ground zero.

Finally, there have been some significant technological changes in battery and fuel cell applications that may result in major additions to natural gas demand in the near future.

That, combined with the already developing use of LNG and compressed natural gas (CNG) for higher-end truck engine retrofitting, is adding another primary outlet for gas.

Natural Gas: Better Returns to Tide Us Over

Against this backdrop of increasing usage and demand, is the massive unconventional (shale, tight, coal bed methane) reserves available in the U.S. (and progressively elsewhere in the world). It is what will allow us to ramp up considerable amounts of new production to meet any new increases in demand.

Natural gas prices, therefore, are not going to be moving back up to the almost $13 per 1,000 cubic feet experienced several years ago. To put matters in major perspective: We now have enough extractable reserves to increase U.S. production by 25% per year into the foreseeable future.

Nobody is about to do that, of course. It would destroy the pricing mechanisms. Yet, it does indicate how much additional demand can be easily met.

The combination of these factors with a normal winter means we now have the makings of a nice pricing foundation moving forward. That will translate into opportunities in several places in the upstream-midstream-downstream natural gas sequence.

In future issues, I’ll be targeting moves in specific sectors with strategic selections and approaches.

Given that a number of these moves have already translated into a number of double and triple-digit profits for Energy Advantage and Energy Inner Circle members, we are going to have some nice opportunities to choose from.

Those profits from the natural gas side will tide us over very nicely while crude oil stabilizes. And the truth is, while crude oil gets more press, natural gas is likely to be where the better returns are found over the next few months.

Source :

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules